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Stocks rebound on positive trade headline
04-Dec-19 16:15 ET

Dow +146.97 at 27649.69, Nasdaq +46.03 at 8566.67, S&P +19.56 at 3112.76

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 rebounded 0.6% on Wednesday, as the market reacted positively to a Bloomberg report that suggested a trade deal with China is close to being reached despite the recent escalation in rhetoric. The Dow Jones Industrial Average (+0.5%), Nasdaq Composite (+0.5%), and Russell 2000 (+0.7%) rose alongside benchmark index.

Details were scant and the sources were anonymous, but the positive-sounding headline proved enough to catalyze today's positive bias. President Trump even said that talks are moving along nicely, which may have reinforced the good mood and helped the market overlook an ADP Employment Change Report and ISM Non-Manufacturing Index for November that missed expectations.

All 11 S&P 500 sectors had traded in the green, led by the energy sector (+1.6%), but a late fade into the close did knock the materials sector (-0.04%) into the red. Energy stocks rose in tandem with oil prices ($58.42, +2.29, +4.1%), which were boosted by news that OPEC+ is considering deeper production cuts.

Notable corporate leadership changes were also viewed favorably by shareholders.

Alphabet's (GOOG 1320.54, +25.26, +2.0%) CEO Larry Page and President Sergey Brin stepped down from management and ceded CEO duties to Sundar Pichai in addition to his current CEO role at Google. Expedia's (EXPE 105.56, +6.17, +6.2%) CEO Mark Okerstrom and CFO Alan Pickerill resigned at the board's request.

On the earnings front, Campbell Soup (CPB 48.47, +0.89, +1.9%) hit a 52-week high after it beat earnings expectations. Salesforce (CRM 156.43, -5.14, -3.2%) and Workday (WDAY 165.39, -8.11, -4.7%) both beat top and bottom-line estimates and provided decent guidance, but shares still finished noticeably lower.

U.S. Treasuries retreated after a big advance yesterday, driving yields higher in a curve-steepening trade. The 2-yr yield increased four basis points to 1.58%, and the 10-yr yield increased seven basis points to 1.78%. The U.S. Dollar Index declined 0.1% to 97.60.

Reviewing Wednesday's economic data, which included the ISM Non-Manufacturing Index for November, the ADP Employment Change report for November, and the weekly MBA Mortgage Applications Index:

The ISM Non-Manufacturing Index decelerated to 53.9% in November (Briefing.com consensus 54.8%) from 54.7% in October. The dividing line between expansion and contraction is 50.0%, so the November reading connotes a sector that continues to run in an expansion mode.
The key takeaway from the report is that it was underpinned by accelerating growth in both the New Orders Index (to 57.1% from 55.6%) and the Employment Index (to 55.5% from 53.7%), which is not what one would expect to see if it was believed the economy was at a recession tipping point.
The ADP Employment Report for November showed an estimated 67,000 positions were added to private-sector payrolls. That was much weaker than the Briefing.com consensus estimate of 175,000.
The weekly MBA Mortgage Applications Index fell 9.2% following a 1.5% increase in the prior week.

Looking ahead, investors will receive the Trade Balance report for October, the Factory Orders report for October, and the weekly Initial and Continuing Claims report on Thursday.

Nasdaq Composite +29.1% YTD
S&P 500 +24.2% YTD
Russell 2000 +19.7% YTD
Dow Jones Industrial Average +18.5% YTD


Market Snapshot
Dow 27649.69 +146.97 (0.53%)
Nasdaq 8566.67 +46.03 (0.54%)
SP 500 3112.76 +19.56 (0.63%)
10-yr Note -27/32 1.770

NYSE Adv 1977 Dec 903 Vol 934.4 mln
Nasdaq Adv 1928 Dec 1178 Vol 2.1 bln


Industry Watch
Strong: Energy, Financials

Weak: Materials


Moving the Market
-- Stocks rebound after Bloomberg reports that trade talks are nearing a deal despite recent escalation in trade

-- Oil prices climb 4% as OPEC+ members reportedly support deeper production cuts

-- Treasuries retreat from yesterday's big advance; financial stocks gain amid some curve-steepening activity



WTI crude settles 4% higher
04-Dec-19 15:25 ET

Dow +191.32 at 27694.04, Nasdaq +54.66 at 8575.30, S&P +23.13 at 3116.33
[BRIEFING.COM] The S&P 500 is on pace to close the session comfortably higher as it trades up by 0.8%.

One last look at the S&P 500 sectors shows all still trading in the green. The energy (+1.5%) and financials (+1.1%) sectors are up more than 1.0%. The consumer discretionary sector trails the pack but is still up a respectable 0.5%.

WTI crude rose $2.29 (+4.1%) higher to $58.42/bbl, predominately due to a report that OPEC is considering deeper production cuts.